AUD/USD Price Analysis: Pullback towards 0.7280 may bring fresh bids towards five-months high

• Bulls need a successful test of breakout area 0.7280-0.7289 to establish a bullish reversal.
• The 200-period Exponential Moving Average near 0.7290 will act as major support.
• For the downside, bears need to violate 0.7237 decisively.

The AUD/USD pair has witnessed significant selling pressure near 0.7440 after a decent run-up in the last few trading sessions. However, the selling pressure seems more a corrective pullback rather than a reversal and is likely to resume rallying further going forward.

On an hourly scale, AUD/USD has rallied decisively after giving a breakout of an ascending triangle. Usually, an ascending triangle denotes a consolidation but with a bullish same and break out of the same results in expansion of volumes, wider ticks, and up-sided rally. The asset is pulling back to the breakout area, which is in a range of 0.7280-0.7289. After a corrective pullback, the major may find some significant bids and will resume rallying again.

The 200-period Exponential Moving Average is trading near 0.7290 will act as a major ground for the pair.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped below 40.00 after oscillating in a range of 40.00-60.00, which indicates a trigger for weakness after a brief consolidation. To validate a bullish reversal, the RSI (14) would need to reverse back in a 40.00-60.00 range from a bearish range of 20.00-40.00.

AUD/USD will find bids once it completes its pullback near the breakout area at 0.7280-0.7289. A successful test of the breakout area will send the pair towards Monday’s average traded price at 0.7378. A breach of the latter will push the asset towards Monday’s high at 0.7427.

On the flip side, bears can dictate the pair if it slips below March 1 low at 0.7237. The violation of the March 1 low will drag the pair towards February 27 low at 0.7160 and February 24 low at 0.7094.

AUD/USD hourly chart